NatWest posted a first-half pre-tax operating profit of £4.3 billion, surpassing analyst forecasts of £4.1 billion, as the bank lifted its annual performance targets and declared an interim dividend of 12 pence per share. The result marked a 20% increase from the same period in 2025, driven by an 11% jump in income and roughly £250 million in gross cost savings.
Second-quarter operating profit climbed 12.4% to £2.3 billion, with return on tangible equity reaching 21%. The bank raised its full-year return-on-tangible-equity target above 19% and lifted income guidance to approximately £17.9 billion. Lending expanded by £9.7 billion during the quarter, while the completed Evelyn Partners acquisition added £73.9 billion in assets under management and administration. The lender plans to consider a new share buyback when it reports full-year results in February.
The cost-to-income ratio fell 2.8 percentage points year-on-year, with the bank deploying AI tools across its 60,000-strong workforce to drive efficiencies. Chief executive Paul Thwaite noted that only 9% of the public currently receives financial advice, pointing to significant market opportunity.